Biz Model for Catchbox
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The document presents a project presentation on Catchbox, a throwable wireless microphone designed to enhance audience engagement during lectures and events. It outlines the product's value proposition, customer selection, revenue capture methods, technical details, and strategy for marketing and operations. Additionally, it addresses potential challenges and future possibilities for expanding the product line.
Biz Model for Catchbox
- 1. Liisa Hakala Tuomas Hervonen Jarno Hilvenius Essi Puustinen Ekku Rytkönen Project presentation MT4002 Technology Management Strategy
- 2. Agenda 1. Introduction to Catchbox 2. Value proposition 3. Customer selection 4. Value capture 5. Scope of activities 6. Strategic control 6th Nov 2012 2
- 3. INTRODUCTION 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 3 INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 4. The Company • Participated in the Finnish “Summer of startups” program • 10 weeks internship program of (CatchBox web page, 2012) Aalto Entrepreneurship Society • End result was their product: Catchbox • Business plan is still in progress – Our goal was to design a business plan for the company – Everything from this slide onwards is created by our group VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 5. VALUE PROPOSITION 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 5 INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 6. “Best new device for crowd Catchbox Q&A I’ve ever seen.” Doug Richard, (Dragons den UK &) School for Startups, London • Throwable wireless microphone – no-one has to run around with a traditional microphone • Engages the audience – Breaks the ice – Sparks discussion – Helps sharing ideas – Increases interaction • Fun to throw, easy to catch (CatchBox web page, 2012) VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 7. Value of Catchbox • For lectures: class paying full attention % – Its hard to maintain the attention of the audience – Catchbox keeps students on their toes and awake • Enhanced discussion • Better Q&A sessions • Improved learning experience time, min – How would the curve look (Mills, 1953) like when using Catchbox? 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 7 INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 8. Disadvantages • Takes attention and focus to the wrong place • Creates too big fuss when used for the first time • Microphone flies to difficult place or a corner • Someone does not know how to catch – Could be embarrassing? • What if Catchbox knocks off coffee or something else? – Who is responsible? VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 9. Technical Details • Product includes – Wireless transmitter – Motion sensor – Microphone – Design-cube shaped cover • Not easy to break • Easy to plug-in to a system • Microphone switched off when Catchbox is in the air • Switched on when catching/landing VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 10. Technical Assumptions • A lot of strategic questions were left unanswered • Resulting technical assumptions – Cover can be changed – Open from side when needed to switch on/off – Can be sold with or without the transmitter – Charging by changing battery VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 11. CUSTOMER SELECTION 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 11 INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 12. What is the customer like? • Curious • Innovative • Interactive-freak • Adventurous • Not too serious • Desires to improve VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 13. Who would be the user? • Universities • Executive education organizations • Comedians • Magicians (NUS web page, 2012) • Firm events • TV shows • All kinds of speakers “This is the first time that a group has proposed a technology that might • (Sponsor firms) help me in my job! Good topic.” Jeff Funk, MT4002, NUS VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 14. Segmentation Two big segments: • Service Providers • Direct Buyers – Companies that provide – Companies or individuals organizations with that deliver speaches in audio-visual systems in a variety of situations their facilities – Key issue is mobility – Turnkey style service – For example guest includes all equipment, lecturers, consultants, installation and later on etc. maintenance VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 15. Segmentation Pros and cons: • Service Providers • Direct Buyers + Not price sensitive + Greater volumes initially + Need to convince only + Easier market the provider penetration + Bulk buys + Might start hype − Market penetration is reaction hard − Need of substantial − Long delivery chain marketing efforts VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 16. Differences in needs Two big segments: • Service Providers • Direct Buyers – Professional quality – Need easy connectivity – Assembly is not a – Ready to use problem – Mobile usage – Stationary usage VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 17. VALUE CAPTURE 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 17 INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 18. Value capture methods • Two main sources of revenue – Online sales (Direct buyers) – Service Providers • Online sales – The sales occurs through our websites – Customer can pay with • Credit/debit • PayPal Express Checkout • Service Providers – Pay directly to us VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 19. Cash flow in the value network COMPONENTS TEXTILES & COMPONENT S SUPPLIER 1 SUPPLIER 1 TECHNOLOGY COVER SUPPLIER 2 ASSEMBLY MANUFACTURING SUPPLIER 2 COMPANY COMPANY SUPPLIER 3 SUPPLIER 3 Banks Payment service SERVICE PROVIDERS CATCHBOX provider PayPal INDIRECT CUSTOMERS DIRECT BUYERS PURCHASING A SYSTEM PURCHASING THE THAT THE PRODUCT IS A PRODUCT FOR THEIR PART OF OWN USE VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 20. Catchbox´s net profit margin is ~50% (Houston chronicle web page, 2012) 100 % Sales price 90 % 300 € 80 % 70 % 60 % 50 % Net profit 40 % Costs 30 % Inclusive of textiles, hardware system, 20 % logistics, inventory, payment service 10 % provider, labor 0% Catchbox cost structure VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 21. SCOPE OF ACTIVITIES 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 21 INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 22. Setting up operations • Catchbox is a startup – Small company – No/Fuzzy infrastructure at the moment – Limited resources • One product Narrow horizontal integration • Outsource rather than do Low degree of vertical integration VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 23. Activities to carry out • Catchbox acts as the designer – Cover design and technical aspects of the product – Some logistics administration and inventory of technology units and covers • Manufacturing is outsourced – Cheap components and technology assembly (China?) – Finnish cover manufacturer Finnish quality recognition and the brand value • In the case of our business growing – Logistics company to manage logistics and inventory Catchbox holds only design functions VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 24. Order information flow COMPONENTS TEXTILES & COMPONENT S SUPPLIER 1 SUPPLIER 1 TECHNOLOGY FINNISH COVER SUPPLIER 2 ASSEMBLY MANUFACTURING SUPPLIER 2 COMPANY COMPANY SUPPLIER 3 SUPPLIER 3 SERVICE PROVIDERS CATCHBOX INDIRECT CUSTOMERS DIRECT BUYERS PURCHASING A SYSTEM PURCHASING THE THAT THE PRODUCT IS A PRODUCT FOR THEIR PART OF OWN USE VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 25. Material flow COMPONENTS TEXTILES & COMPONENT S SUPPLIER 1 SUPPLIER 1 TECHNOLOGY FINNISH COVER SUPPLIER 2 ASSEMBLY MANUFACTURING SUPPLIER 2 COMPANY COMPANY SUPPLIER 3 SUPPLIER 3 SERVICE PROVIDERS CATCHBOX INDIRECT CUSTOMERS DIRECT BUYERS PURCHASING A SYSTEM PURCHASING THE THAT THE PRODUCT IS A PRODUCT FOR THEIR PART OF OWN USE VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 26. Activities to carry out • Marketing and promotion – In the absense of resources marketing has to be modern and clever – Marketing through social media such as Facebook and Twitter – Participating in public events with media coverage – Promotion through the customers • Direct buyers promote Catchbox by using it and getting the word out • Service providers can promote the new product to their customers Added value to their offering by having a product their competition lacks VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 27. Examples • Promotion in events: – Finnish Municipal Elections debate 2012 (YLE) VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 28. Examples • Promotion by speakers: – Linus Torvalds in Aalto University (EIT ICT Labs) VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 29. STRATEGIC CONTROL 6th Nov 2012 VALUE CUSTOMER VALUE SCOPE OF STRATEGIC 29 INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 30. Strategic Control • Competitive advantages – Nothing similar available – Finnish design – Professional buyers • Trust quality products – Niche product (Avainlippu web page, 2012) VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 31. Complementary Assets • Needed technology already available – design concept product • Production can be easily outsourced • Need to broaden supplier base • Licensing contracts with cover providers and designers VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 32. Protecting the product • Patenting design • Trademark • Retaining high quality – Demanded by professional buyers and users VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 33. Future possibilities • Larger version for catching the atmosphere in larger events – e.g. crowd surfing Catchbox in concerts • Advertisements on the cover • Company-tailored covers • Catchbox with camera VALUE CUSTOMER VALUE SCOPE OF STRATEGIC INTRODUCTION PROPOSITION SELECTION CAPTURE ACTIVITIES CONTROL
- 34. THANK YOU! (Rapgenius web page, 2012) Next: 5 minutes for questions Go!
- 35. References • Cover slide background picture – http://www.talouselama.fi/Kasvuyritykset/pehmea+mikrofonikuutio+lensi+yleison+sydamiin++sta rtup+loi+valmiin+tuotteen+2+kuukaudessa/a2139106 , last used 17.10.2012 • Catchbox related pictures and Cite from Doug Dichard – www.thecatchbox.com, last used 17.10.2012 (First blue one original, other own mock-ups) • Attention graph on slide 7 – Mills, H. R., Techniques of technical training, Cleaver-Hume Press, London, 1953. • Photo of Jeff Funk on slide 13 – NUS Faculty of Engineering Staff profiles, http://www.eng.nus.edu.sg/etm/staff/Funk_JL.htm, last used 17.10.2012. • Estimated margins for Catchbox on slide 20 – http://smallbusiness.chron.com/average-profit-margin-small-business-23368.html, last cited 10.10.2012. • Finnish Municipal Elections debate 2012 on slide 27 – screen capture: YLE broadcast, 21.10.2012 • Linus Torvalds public speech on slide 28 – screen capture: EIT ICT Labs live webcast, 23.10.2012 • “Design from Finland” figure on slide 30 – http://www.avainlippu.fi/liiton_merkit/design-finland, last used 15.10.2012 • Borat picture on slide 34 – http://s3.amazonaws.com/rapgenius/1291131680_two-thumbs-up.jpg, last used 17.10.2012.
- 36. Back up slide: Level of margins • There are four types of wireless microphones: • headset microphone • lavalier/lapel microphone • handheld microphone • The price ranges for each product type falls roughly into the following categories (source: myshopping.com.au): • 7-80 € • 80-240 € • 240-480 € (Catchbox) • 480-1600 €